Welcome!
Stages of international marketing and strategic orientation
Dr. Satyendra Singh
Professor, Marketing & International Business
Conference Chair, ABEM Conference
University of Winnipeg, CANADA
s.singh@uwinnipeg.ca
Stages of International marketing…
① No Direct Foreign Marketing
② Infrequent Foreign Marketing
③ Regular Foreign Marketing
④ International Marketing
⑤ Global Marketing
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Stages of International Marketing…
① No Direct Foreign Marketing
Not active foreign customer seekers
Foreign markets via domestic wholesalers/distributors
Unsolicited orders
Internet
② Infrequent Foreign Marketing
Variation in production levels or demands
No commitment to foreign market representation
If domestic demand ↑, foreign activity ↓
Foreign agents may approach
Managers’ own foreign contacts
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Stages of International Marketing…
③ Regular Foreign Marketing
Dedicated production capacity to foreign markets
Own sales force/subsidiaries in foreign markets
Domestic market is still the prime focus, but as the foreign demand ↑,
production/products are adapted to meet those customer needs
Depend on foreign sales to meet goal (vs. as a bonus)
④ International Marketing
Fully committed and involved in international marketing
Planned productions for various foreign markets
Production of goods in foreign markets as well
At this stage, a firm is international or multi-national
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Stages of International Marketing
⑤ Global Marketing
Treats the world including home market as one
Market segments are defined by demographic and psychographic variables
Half of its revenue should come from foreign market
Global perspective is the focus
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Strategic Orientations
Domestic Marketing Extension
Multidomestic Marketing
Global Marketing
Ethnocentric
Polycentric
Regio/Geocentric
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Strategic Orientations…
Domestic Market Extension Orientation (Stage ①/②)
Extension of domestic products into foreign markets
International markets are secondary
Prime focus—market excess domestic products abroad
Firm’s orientation is domestic
Multi-Domestic Market Orientation (Stage ②/③)
Realizes the difference b/w domestic & foreign markets
Different countries need different products
Separate marketing strategies for each country
Subsidiaries operate independent of one another
Products are adapted, advertising is localized
Might not standardize products
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Strategic Orientations
Regional/Global Orientation (Stage ④/⑤)
Truly global – single market
Emphasis on standardization—product/process
Strive for efficiencies of scale by standardizing market mix across
national borders, whenever it is cost or culture effective
Pursue a global strategy for major brands or multi-domestic strategy for
other brands
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In-class group activity: 30-45 minutes
The 5-stage model and strategic orientation
Identify 20 Canadians companies
Explain the stage at which each company is
Provide rationale for the stage of each company and its brands
Map the stage to the strategic orientation
Prepare a 10-minute (Max) group presentation using PowerPoint Slides
Please e-mail the PPT slides at s.singh@uwinnipeg.ca and write “your group # and strategic orientation” in the subject line, so I could browse it before your presentation.
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Questions?�s.singh@uwinnipeg.ca